Advice regarding collection

[USA Traveler]

What is the name of your state? Texas

Aug 16, 2006, my husband and I terminated our contract with Cingular. We had two lines so the cost was $300 ($150 for each line). Cingular informed us that we would receive a final bill with the termination fee included. The bill was for almost a full month, so with the termination fee and with our monthly plan the full bill was $427.89. We contacted Cingular as soon as we received the bill (Sept 17, 2006) to see if we could make arrangements to pay the bill at $100.00 per month with the last bill $127.89. The representative I spoke with said that would be fine. The first payment was due Oct 1, we paid it online Sept 30.

Today we received a letter from a collection agency, stating we owed $504.91. I do not understand why Cingular agreed to the terms if they were turning the account over to a collection. Do we have to pay the extra collection fees to the agency even though Cingular had agreed to the terms? Will this go on our credit report?

I appreciate advice or assistance.

[K'Ta]

Originally Posted by USA Traveler

Today we received a letter from a collection agency, stating we owed $504.91. I do not understand why Cingular agreed to the terms if they were turning the account over to a collection. Do we have to pay the extra collection fees to the agency even though Cingular had agreed to the terms? Will this go on our credit report?

I appreciate advice or assistance.

You didn't get the agreement in writing and, as you found out, what a rep says to you over the phone is utterly worthless.

Yes, you have to pay the collection fees and yes, it probably will go on your credit report.